Adani Carmichael Coal Mine Queensland

As a nation goes, how foolish is our government and our bureaucrats?

From a pure governance perspective, any reputable Australian business person, and risk aware financial institutions, would steer clear of an investment in the Adani Carmichael Coal Mine, and it has very little do to with climate change, although from that perspective, this is the craziest undertaking we currently have in this country.

I am looking at this purely from a governance and related risk perspective. The key issues are quite simple, namely:

1. From a deal-making perspective, Adani has a questionable history in its home country
2. Those that are at the helm of Adani, have themselves, a questionable reputation in governance execution in their home country
3. The controlling entity is likely to be domiciled in an offshore tax haven that will be inaccessible to Australian regulatory authorities should there be a need to call upon that entity to rectify any breaches associated with the one development or functions, including those that may breach environmental conditions
4. From a financial perspective, the mine does not appear to stack up. some of the largest and reputable banks in the world have pulled out of the deal, questioning the very fundamentals of financial governance

So here we have an investment proposal that does not stack up financially and has very questionable governance structures, and yet, the Australian government is willing to throw $1 billion of taxpayer funds into the venture, partnering with unknown invisibles, given the offshore structures. All this whilst the Queensland government wants to promise jobs into the future which will probably never actually arise, assuming the mine actually begins any operations. Whilst some jobs will be created during the apparent construction phase, it is well known that the mining sector is capital intensive, not labour intensive.

The other aspect to this of course is that India itself is seeking to expand renewable energy as an alternative to coal, based on their own view as to the long-term sustainability of fossil fuels in the medium to long-term. 

The simple facts of this debacle are these:

1. Adani will not be the economic saviour of Australia. Sustainable jobs will not be created in Qld or anywhere else resulting from this development
2. The Carmichael Coal Mine will jeopardise existing wealth-creating activities associated with the Great Barrier Reef, whose tourism opportunities have as yet, not been fully exploited
3. Australian taxpayers will see little return for their $1 billion investment, socially or economically. 

It would appear that other than coal producers, Tony Abbott and certain members of the Coalition government are the only ones currently in the world who are of the mistaken belief that coal is the future. 

No, in fact, coal is not only the past, but actually jeopardises the future for our children, our grandchildren and generations to come.

2016 comes to a close - Summing up the nonprofit sector and what we can look forward to from OPTIMUM NFP in 2017.

For all of you involved in the nonprofit sector, 2016 has been a very challenging year, and every indication is that 2017 will probably be more of the same.

Activity in the political and economic sphere has seen the sector coming to grips with what it all means for their own organisation. 

• The ongoing roll-out of the NDIS has seen a  myriad of responses, ranging from thoughts of risk and downside through to opportunity and expansion, whilst responding to the financial sustainability challenges associated with a previous supply-driven model moving to a generational-change demand-driven model;
• The ongoing children abuse Royal Commission has seen many organisations tighten their risk frameworks to ensure such obscene activities are not part of their culture, and for those caught up in the findings, an in-depth look into their own organisational mirrors in order to introduce fundamental change;
• The strengthening of the ACNC has seen a degree of confidence introduced into the sector with regards a range of  compliance issues;
• Changes to Australian Disability Employment frameworks has seen many in this aspect of the sector revise their current business models, in line with similar challenges in the disability services sector;
• Ongoing reforms to residential aged care has seen organisations in this sector review their own business models to address long-term sustainability challenges;
• An industry-wide focus on governance within the sector from wide-ranging sources that have resulted in many organisations in this sector carefully looking at what they currently do as compared to what they perhaps should be doing, especially with regards risk management, financial management, and board structure and development.

OPTIMUM NFP has been heavily involved in many of these nonprofit issues and over the 2016 period has further involved itself with many such organisations undertaking projects such as:

• Transitioning Incorporated Associations to Companies Limited by Guarantee;
• Organisation-wide strategic planning activities using a bottom-up approach to develop and launch strategic plans
• Mentoring executive team members;
• In-house board governance workshops;
• Change management planning;
• Structuring boards with new non-executive directors
• Conducting public Action Learning Question Programs
• Delivering 4 post-graduate units at the Australian Institute of Management MBA course, including 1 in Strategic Organisational Change and 3 in Managing Financial Resources

2017 will continue the challenges for the nonprofit sector, as well as bringing new ones, to which the sector will once again be challenged to consider innovative ways of moving forward. The confused nature of public policy will no doubt add to these challenges, in a very unhelpful fashion.

OPTIMUM NFP is looking to 2017 with a continued sense of anticipation and optimism, whilst also being realistic in recognising that many nonprofit organisations may face substantial risk if they fail to grasp and implement the governance and strategic planning frameworks that they must seriously consider.

During 2017, OPTIMUM NFP will be focused on the following activities:

• David will be completing his PhD studies at Macquarie University. This has been a long but personally rewarding journey (commenced in late 2010). Currently there are three papers that have been published in international peer reviewed journals, whilst a fourth paper is currently under review. My fifth and final paper is currently being prepared for submission. The papers, by title, have included:
• "Action Leanring Intervention as a Change Management Strategy in the Disability Services Sector - A Case Study", published in the Action Learning Action Research Journal
• "A Longitudinal Qualitative Case Study of Change in Nonprofits", published in the Journal of Management & Organization
• "Applying Grounded Theory to Investigating Change Management in the Nonprofit Sector", published in Sage Open
• "Planned Organisational Change Management - Forward to the Past? An explorative literature review", currently being considered for possible publication in the Journal of Organizational Change Management
• Applying the findings in the PhD research, OPTIMUM NFP will be launching a consulting service that seeks to ensure that nonprofit organisations can undertake an organisation specific change readiness analysis which will outline potential challenges within their organisation that can be addressed prior to changes being implemented, thereby increasing the likelihood of successful change outcomes. The service will be launched during the fist quarter of 2017 and is called the 'CARC' program - Culture Assessment for Readiness of Change, and uses the outcomes of the latest nonprofit specific research derived directly from David's PhD. Watch out for the launch announcement.
• During 2017, OPTIMUM NFP in conjunction with Action Learning International, will launch a further public Action Learning Question Program, which has been critically acclaimed and continues to be supported by the Australian Institute of Management Business School. This will be further expanded as purpose-designed in-house programs for larger nonprofit organisations. Keep an eye out for the program dates.
• In mid 2017, OPTIMUM NFP will leverage its success in executive team mentoring through the launch of its "Manager Development Groups" which utilise Action Learning as a key process in leadership development. Look out for the formal announcement of these.

OPTIMUM NFP will of course continue to focus on its strengths in delivering consulting input into Strategic Planning and Governance.

2016 has been a very busy year. 2017 is going to be an exciting year as OPTIMUM NFP continues to build on its skills and expertise in delivering new and innovative services that will continue to add value to nonprofit organisations, ensuring that the focus on organisational sustainability remains a key deliverable in all our consulting assingments.

I would like to thank my clients for allowing me to be part of their solutions during 2016 and I look forward to being able to adding further value to their organisations in 2017.

I wish you all a very Merry Christmas and a Healthy, Prosperous and Safe 2017.

Fundraising as a Strategic Responsibility - David Rosenbaum Presenting at the upcoming Blackbaud 'Outcomes Conference' - 30th November 2016

My strategic planning work with numerous NFP organisations always seeks to include the strategic importance of fundraising as both a board and an organisation-wide activity. Many NFPs tend to have DGR registration (Deductible Gift Recipient) but fail to use this asset as a strategic one, instead having it remain as a relative non-performing asset and merely accepting the odd, small donation either when it comes their way or to assist in the holding of small events that tend not to attract the sort of dollars that necessarily make it worthwhile.

One of the greatest challenges to the NFP sector, as we are being told, and as governments continue to stress, is long-term financial sustainability. From a financial perspective, such financial sustainability requires a strong and consistent efforts of ensuring that the assets that we hold rewording for us, and delivering at a rate that enables us to deliver our services in a wider context than purely on the assumption of ongoing government funding. The DGR registration is one of those assets which, in many NFPs, continues to liger without much focus.

Whilst OPTIMUM NFP is not a fundraising consultancy, my efforts focus in strategic planning for NFPs, ensure s that at the strategic level, NFP boards and their executive teams understand the importance of their DGRE status and how focusing on its use can add value to their financial sustainability plans, thereby delivering increasing value to the organisation over time.

Following my extensive work in this area, I am pleased to announce that I have been asked to be part of a one-day online conference being held on the 30th November and organised by Blackbaud Pacific Pty. Ltd., one of Australia's leading social-good technology companies, where I join a number of other industry experts to discuss the complexities of outcomes measurement to better understand what supporters and grant makers really want to know about your NFP.

 The virtual event features six presentations including:

• Philanthropic Services Manager at Philanthropy Australia - Chris Wootton
• NDS panel expert from OPTIMUM NFP - David Rosenbaum discussing the role that strategic planning plays in donor funding
• Outcomes futurist Jayne Meyer Tucker, and
• CEO of Cystic WA - Nigel Baker presenting his case study on outcomes measurement following a very successful funding round of $5.4 million.

The agenda has been structured as follows:

• 10:00 a.m. - Why outcomes...and why now?
• 11:00 a.m. - Strategic planning for outcomes
• 12:00 p.m. - Intelligent funding - How to evaluate the impact of your giving
• 1:00 p.m. - "This just isn't working" - An outstanding outcomes case study
• 2:00 p.m. - What funders want
• 3:00 p.m. - Demonstrating and communicating your impact
• 4:00 p.m. - Innovations in outcomes measurement

Tickets cost $50 for the entire day and delegates can login for the sessions of interest or join them all. Visit the Blackbaud registration site at  http://fundraising.blackbaud.com.au/events/ to register for the "Outcomes Online Conference".

Contact David Rosenbaum at drosenbaum@optimumnfp.com.au  or on 0411-744-911 to arrange a no-obligations meeting to discuss your NFP strategic planning requirements and how OPTIMUM NFP can assist your organisation in developing a Strategic Plan that can support your future financial sustainability.

I look forward to hearing from you and to your attendance at the Conference

Is a Questioning Culture in Your Organisation? - If not, you may be missing out

A fundamental element of Action Learning is the ability to ask insightful questions. You know the ones I am referring to. Not questions that merely have single dimensions to the answers, and not ones that offer little scope for discussion and analysis. Not ones that merely provide the questioner with the answers they were seeking or expecting. And certainly not the ones that fail to promote learning which can result in real change.

Asking the right questions in the right manner, at the right time, and in the right way, can provide some very substantial organisational benefits, which are both long-lasting and productive. The problem is that in a world where leadership is often mistaken for leaders having the solutions to all organisational challenges, leaders tend not to ask the questions throughout the organisation that will get people to really think and reflect before responding. Usually there is not the time to do so. The pace of change warrants an immediate response - or so people think. In fact, the best response could be the delayed one, especially when seeking solutions to complex challenges that should be the focus of such insightful questions.

Knowing how to ask the right question should be one of the many fundamental tools in a leaders' toolbox. Without these questions, are leaders really getting the right input and feedback that ensures the picture they have of the situation is the correct one, rather than a distorted view based on their own biases?

Sydney Finkelstein noted in his 2004 article entitled "Zombie business: How to learn from their mistakes", coined the term 'zombie companies' which he said such a company was a "...walking corpse that just doesn't know yet that it is dead - because this company has created an insulated culture that systematically excludes any information that could contradict its reigning picture of reality." In this sense, the challenge for leaders is not to avoid questions that result in deep and meaningful answers, but rather to see such questions as learning opportunities, opening an organisational culture that is constantly putting a mirror to itself and responding through informed change.

Ed Oakley and Doug Krug in their 1994 publication entitled "Enlightened Leadership" suggested that "... the better we as leaders become at asking effective questions and listening for those answers to those questions, the more consistently we and the people with whom we work can accomplish mutually satisfying objectives, be empowered, reduce resistance, and create a willingness to pursue innovative change."

So how do we best define and develop a questioning culture in our organisations? Michael Marquardt in his 2014 publication entitled "Leading with Questions - How leaders find the right solutions by knowing what to ask", suggests that a questioning culture is "... a culture in which responsibility is shared. And when responsibility is shared, problems are shared and ownership of results are shared. When an organisation develops a questioning culture, it also creates a culture of we, rather than a culture of you versus me, or management versus employee." 

Marquardt suggets 6 defining characteristics of a questioning organisational culture. These include:

1. People within it are willing to admit that they don't know the answer
2. People within it go beyond allowing questions, they encourage them
3. People throughout the organisation are helped to develop the skills needed to ask questions in a positive, rather than negative way
4. People throughout the organisation focus on questions that empower others, rather than disempowering them
5. People throughout the organisation are expected to focus on asking questions and searching for answers, rather than merely always finding the elusive 'right' answer, and
6. People throughout the organisation are recognised for taking calculated risks in pursuing the organisational goals and objectives.

How does your organisation stack up? Do you have a questioning culture? Are you asking the right questions and are your staff well versed in the power of questions?

OPTIMUM NFP in conjunction with Action Learning International launched the Action Learning Question Program in the Australian NFP sector in 2013. The Program runs both as public and in-house sessions and its success has been well documented by those that have participated. It is predicated on resolving organisational challenges and developing staff and leaders by asking the right questions.The Program has been formally accredited by the Australian Institute of Management Business School.

Contact David Rosenbaum at drosenbaum@optimumnfp.com.au or on 0411-744-911 to arrange a no-obligation meeting to discuss the Action Learning Question Program and how it can help your organisation take on the question culture that many recognise is needed in the modern organisation.

Board Practices - How Does Your NFP Stack Up?

Much is being written regarding the state of NFP Board practices across the western economies. It makes for some interesting reading and provides some good comparisons and benchmarks for your own NFP board. The latest "Leading with Intent" survey from the united States, which commenced annual collection in 1994, reflects board responsibilities across 10 leading indicators. Whilst it covers the board, the chair and the CEO, it is the board evaluation which I think provides the greatest challenges if considered in the light of the substantial strategic and operational issues that Australian NFPs face over the next 10 years or so. Despite  a number of social, economic and legal differences between Australia and the United States, there remain many similarities, and so it is worthwhile considering the output in this context.

Overall US NFP boards were generally better at technical tasks, such as financial oversight and compliance but less so at adaptive work related to strategy and community outreach. This measure was undertaken against a backdrop of great similarities between the two countries, namely economic challenges, declining government funding and continued growth in service demand.

As a moving indicator that has been measured over the last 22 years, it provides a good analysis of both improvement and decline over that period, meaning trending becomes important. In the case of financial performance of medium organisations, being those with turnover greater than $1 million but less than $10 million, 53% of those surveyed improved their results, 38% remained the same whilst 9% had in fact deteriorated. Those with operating budgets greater than $10 million reflected a similar profile excepting 36% were about the same whilst 11% reflected deterioration.

In the work that I do with boards reviewing their overall governance, I use a custom designed 100-point on-line survey covering board roles, board processes, board behaviours and board membership. The most challenging aspects of performance that I have tracked since the first use of the tool in 2010 across a number of varying sized NFPs, has been strategic planning capabilities, board accountabilities, board membership issues associated with the appropriateness of relevant skills, effectiveness of relationships with the CEO and mission alignment in terms of the board decision-making processes.

The overlap between US characteristics in this sector and the Australian experience appears to be at the strategy level. In the context of the current and future challenges for Australian NFPs, this is potentially concerning as the market and funding challenges require, in many instances, a rethink of the strategic future direction of many of these organisations. So a key question therefore must be, to what extent are Australian NFP boards ready to address the strategic direction of their organisations?

OPTIMUM NFP has developed a strategic planning process and board governance review mechanism that responds to conditions that many have described as volatile, uncertain, complex, ambiguous and diverse. Conditions that demand your board operating at levels that inform a potentially new strategic direction.

Contact David Rosenbaum at drosenbaum@optimumnfp.com.au or on 0411-744-911 to arrange a no-obligations meeting to discuss how OPTIMUM NFP can add value to your NFP by ensuring your Board has the skills and capabilities to adequately steer your NFP through these challenging market conditions. The experience of OPTIMUM NFP could be exactly what you need at this point in time.

Strategic Planning - How Does Research Inform Our Practice?

Strategic planning is undertaken in many different ways in the various nonprofit organisations that I have interacted with and consulted to over the years. Whilst the various approaches all focus on some level of engagement across the organisation, methods of such engagement, depth of engagement, and timing of this engagement, vary quite widely. The one thing that they have in common is the desired output - being some sort of strategy plan, the format and structure of which, also varies quite widely.

In an attempt to bring this variety into some broader context, I noted with interest, an academic article in the July 2015 British Journal of Management entitled "Off to Plan or Out to Lunch? Relationships between Design Characteristics and Outcomes of Strategy Workshops" by Healey, Hodgkinson, Whittington and Johnson (of Manchester Business School, Warwick Business School, and Lancaster University Management School). Having delivered one of my research papers, entitled "Action Learning Intervention as a Change Management Strategy in the Disability Services Sector - A Case Study" at the 2013 British Academy of Management, to which the British Journal of Management is linked, the article on strategic planning attracted my attention.

A range of very interesting findings were presented in this research, which was based on a detailed questionnaire survey that was distributed to a random sample of 8,000 members of the UK's Chartered Management Institute, from which there were 1,337 respondents, being a response rate of just under 17%. Those that had not participated in a strategic planning workshop in their current organisation were then excluded from the analysis, which left a total of 846 valid responses from which the findings of the research were drawn.

These findings may be of interest to your organisation, especially as you may be planning your next round of strategic plans and considering the vagaries of workshop alternatives to enhance the process and inform the production of your strategic plan. The findings focused on what was identified as three concepts related to outcomes of strategy workshops, identified as follows:

1. The research identified the organisational outcomes that were linked to the formal workshops. The researchers defined organisational outcomes as the impacts that the workshops would have on the organisation's strategic direction, including its vision, values, business plan and business processes. Here they suggested that the formalities of the event itself provided a rare forum for examining and changing the goals of the organisation as well as defining the communication strategies around this. They supported this by suggesting that a process of open and frank discussion concerning the long-term logic of the business, underpinned any switching of the strategic focus.
2. The research identified the interpersonal outcomes that were linked to the formal workshops. The researchers identified the team-building and organisational development impacts that such formal workshops enabled. The bringing together of individuals to collaborate on the common issues, facilitated these outcomes, reversing the sense of disengagement and the absence of shared feeling that some experience if they have not been involved in such formal workshop events leading to the development of the strategic plan.
3. Finally, the research identified what they referred to as the cognitive outcomes that were linked to the formal workshop processes. Cognitive outcomes were described  as the understanding of the organisation's strategic positioning and direction, the strategic issues that it faced and the wider business environment that informed the full range of strategic outcomes.

What practical guidance can be extracted from this type of research and what, if any, are the implications for your own organisation as you consider the workshop structure, process and aftermath, as you commence your strategic planning activities?

• I think it is reasonable to assume that your workshop design should consider the interplay of all outcomes identified by the research, namely organisational, interpersonal and cognitive;
• I believe that from a structural perspective, the outcomes of the workshop should ensure that opportunities to strengthen the internal organisational communication lines is maximised;
• The strategic inclusion of relevant personnel from across the organisation must be considered in order to maximise the sense of inclusion and to pave the way for well considered strategy content;
• Strengthening key internal relationships should also be identified as an outcome that can deliver benefits in both strategy-inputs as well as strategy-implementation; and
• The success of your strategic planning processes is potentially predicated on the adequacy and depth of your preparations.

OPTIMUM NFP has developed a strategic planning process that has responded to many of the issues identified in this research and has successfully executed the process in many nonprofit organisations. Contact David Rosenbaum at drosenbaum@optimumnfp.com.auor on 0411-744-911 to arrange a no-obligation meeting to discuss your organisation's strategy planning process. Make the most out of the research that, when used well, can be to your organisation's benefit.

Change Management Podcast - David Rosenbaum and the Australian Institute of Management Business School

David Rosenbaum being interviewed by Professor Elizabeth More, National Academic Director, Australian Institute of Management Business School

1st AIM Business School Podcast series

  

Change management is one of those issues that resonates with just about every organisation, irrespective of industry sector, and irrespective of the organisation's positioning. It is one of those challenges that has been in existence for decades and the extent to which organisations continue to be challenged by it, is recognition of its complexity. In truth there is no simple answer, nor is there a prescriptive approach that guides successful organisational change.

In my own PhD research into change management in the Australian nonprofit sector, I have identified a number of factors which are considered ingredients in successful change, and findings from this research has now been published internationally.

In the first of AIM Business School's podcast series, Professor Elizabeth More, National Academic Director of the Australian Institute of Management Business School interviews me to discuss this very broad topic, both in my capacity as a consultant in change, a researcher and author on change, and as National Unit Coordinator for the Australian Institute of Management MBA Program in the Unit entitled Strategic Organisational Change.

You can access this podcast by clicking on the following URL link:

https://soundcloud.com/user-797298966/david-rosenbaum-change-management

Please feel free to contact David Rosenbaum of OPTIMUM NFP on 0411-744-911 or at drosenbaum@optimumnfp.com.au to discuss change management in your organisation or to obtain further information about the Strategic Organisational Change Unit at the Australian Institute of Management Business School.

Managing Successful Change - How recommendations from my own PhD research can best be integrated into your NFPs change program

Change management is one of those topics that has been at the forefront of organisational discussions for over 70 years, as a topic that has engaged practitioners and academics alike, all attempting to better understand it so that successful organisational change can become the norm, as distinct to the apparent high failure rates that have been evidenced over the decades. Yet throughout this period, little or no research has been undertaken in change management from a purely nonprofit perspective.

Whilst some argue that this may  not be necessary be! cause organisational characteristics are alike across the sectors, others, including myself, argue that change must be considered from those that are involved in it, rather than purely the organisational perspective. The point here of course is that personnel characteristics within the nonprofit sector are quite different, and in some respects unique, hence the need to consider change management research within this sector, being an important addition to the broader research on change.

My research was undertaken at a Sydney-based nonprofit hospital undergoing major change with regards the design and implementation of an electronic patient management system. The full details of this study have now been published in the Journal of Management and Organization and form the central paper of my soon to be completed PhD. Whilst the full paper, entitled "A Longitudinal Qualitative Case Study of Change in Nonprofits - Suggesting a New Approach to the ma! nagement of Change" can be accessed on-line through Cambridge University Press (http://dx.doi.org/10.1017/jmo.2016.6) the key recommendations, as presented in the paper, which may be of interest to those within the sector were as follows:

1. There is a need to formally include reflection time and reflective practices for all change participants in the planning, execution, and concluding stages of change, understanding that those experiencing change react to a wide range of emotions leading up to the change, during the execution phase, as well as in the post-change phase, and throughout this period, need to not only absorb the practicalities of the change and what this may mean for their own positions, but to also be able to verbalise their thoughts and discuss these in an open and supportive environment with colleagues, including internal change agents and management.
2. There is a need for the organisation to openly reflect on both the success and failure of past change experiences as a fundamental component of the planning stages of change, reinforcing trust and confidence in management with regards their ability to plan for, and execute change successfully.
3. There is a need for management to maintain an adequate focus on the individuals experiencing the change rather than an organisational focus as a primary (and often sole) consideration, creating an organisation-wide view as to management's interest in the welfare of change recipients throughout the change process and reinforcing an inclusive approach to the challenge of change within the organisation.
4. Finally there is an expectation that timing considerations are appropriately identified in the change-planning process, with specific reference to communication and change-recipient engagement processes, underpin! ning a strong correlation between the level of change preparation and readiness, with actual change execution.

Change is now pervasive within the nonprofit sector, with much of it being quite transformational with regards the design and implementation of new business models that really do challenge the core of many of these organisations. They also present very real challenges for staff, who are now being expected to absorb more commercial elements in their long-standing dealings with their clients. The culture of many of these organisations is being challenged.

OPTIMUM NFP has been actively engaged in assisting organisations design and implement change strategies, using processes that add substantial value to the change outcomes.

Contact David Rosenbaum of OPTIMUM NFP at drosenbaum@optimumnfp.com.au or 0411-744-911 for a no-obligation discussion on how these findings can be best integrated to changes planned for your own organisation.
 

Developing Your Leaders and Up-Skilling Your Staff

OPTIMUM NFP announces the launch of its 3rd highly acclaimed and accredited "Action Learning Question Cross-Organisational Cohort" program commencing in early July 2016.

Nonprofit organisations juggle many competing priorities, especially in the current market, with each having an impact on their future. One of these stands out for those organisations who see themselves having a long-term vision, and that being the effort and budget needed to develop leadership and generally up-skilling their staff.

In a leading article in the January 2014 edition of McKinsey Quarterly entitled "Why leadership-development programs fail", 4 reasons as to why such programs rarely achieve what they set out to achieve were identified. These were:

1. These programs overlooked organisational context. As was highlighted in the article, "Too many training initiatives we come across rest on the assumption that one size fits all and that the same group of skills or style of leadership is appropriate regardless of strategy, organisational culture, or CEO mandate." The article went further by suggesting that "Focusing on context means equipping leaders with a small number of competencies (two or three) that will make a significant difference to performance ... We have found that when a company cuts through the noise to identify a small number of leadership capabilities essential for success in its business - such as high quality decision making or stronger coaching skills - it achieves far better outcomes."
2. These programs failed to incorporate reflection as part of the real workplace. As was highlighted in the article, "The answer sounds straight forward: tie leadership development to real on-the-job projects that have a business impact and improve learning." The article went further by suggesting that "The ability to push training participants to reflect, while also giving them real work experiences to apply new approaches and hone their skills, is a valuable combination ..." 
3. These programs underestimated the need to change existing mind-sets. The article suggested that "Becoming a more effective leader often requires changing behaviour. But although most companies recognise that this also means adjusting underlying mindsets, too often these organisations are reluctant to address the root causes of why leaders act the way they do." It further suggested that"Identifying some of the deepest, below the surface thoughts, feelings, assumptions, and beliefs is usually a precondition of behavioural change - one too often shirked in development programs."
4. These programs often failed to measure real results. The article suggested that "We frequently find that companies pay lip service to the importance of developing leadership skills but have no evidence to quantify the value of their investment." The article suggests that evaluation should be focused at both the individual level as well as at the organisational outcomes, indicating that "...monitor the business impact, especially when training is tied to breakthrough projects." 

OPTIMUM NFP and Action Learning International's Action Learning Question Program ("ALQ") has been developed to specifically address the issue of cost-effective leadership and staff development for nonprofit organisations. Context has been identified through the use of organisation specific challenges which need to be addressed and resolved during the course of the program, supported by the introduction of skill and leadership attributes necessary for such resolution. Reflection has been included as a distinct and iterative activity through both formal and informal processes, supporting skills and leadership development. Mind-Sets are challenged through the co-consulting processes of the ALQ, and Results are identified and evaluated though the final reporting processes derived from the ALQ.

OPTIMUM NFP in conjunction with Action Learning International launched the Action Learning Question program ("ALQ") in the nonprofit sector in mid 2014. The ALQ program has been running successfully in the UK for over 15 years, across nonprofit, commercial and public sector organisations. In the latter alone, over 200 participants have successfully completed the program over the last 3+ years. In Australia, the ALQ is being delivered as both an in-house program as well as a public program. The latter are known as Cross-Oragnisational Cohorts ("COCH"). The ALQ program, in both formats, responds directly to the challenges and opportunities discussed above and fully supports a more evaluative framework for assessing the effectiveness of organisational learning and development.

The first COCH completed in November 2015, whilst the second program is currently underway and is due for completion in early June 2016. The program has been recognised by the Australian Institute of Management Business School who, after rigorous review of content, structure and delivery methods, has accredited the program as 1 Unit (elective) towards its highly acclaimed 12-Unit Master of Business Administration (MBA) Degree.
The feedback from the first COCH was excellent and exceeded the expectations of those that attended. The second program is heading in the same direction with participants currently very enthusiastic about the process. A third program will be launched shortly for commencement in July 2016. Places for these programs are limited to ensure the best outcome for attendees.

Whilst registration forms will be available shortly on the OPTIMUM NFP website, you can register your preliminary interest by contacting David Rosenbaum at drosenbaum@optimumnfp.com.au or you can contact David Rosenbaum on 0411-744-911 to discuss the program in more detail to determine its applicability to you and your organisation. The flexible design and format of the program enables interstate participants to involve themselves in Sydney-based cohorts.

Visit the OPTIMUM NFP website at www.optimumnfp.com.au and click on the "ALQ Workshops" tab to read the testimonials from the first program and to obtain information as to the structure and process of the COCH generally.

Research Article - Change Management in Nonprofits

Pleased to announce that key findings from my PhD research have now been published. The article entitled "A longitudinal qualitative case study of change in nonprofits: Suggesting a new approach to the management of change" is available on-line at the Journal of Management & Organisation, a Cambridge University Press publication. Contact David Rosenbaum at drosenbaum@optimumnfp.com.au to express your interest in obtaining access.

Aligning Learning and Development with Organisational Strategic Priorities

Much information exists in the public domain regarding the trends in learning that are impacting organisations of all sizes and in all sectors, not to mention the challenges that these bring to tertiary institutions as well, in terms of both course design and delivery. The massive explosion in technology, both from an application as well as from an enabler perspective are impacting the ways in which people engage within learning and education and respond to the varied opportunities that have now arisen. This represents challenges for organisations not engaged in the process and for those individuals who do not wish to take responsibility for their own learning. On the other hand, it represents opportunities for those organisations seeking a better return on their training investment dollars, and those individuals who recognise the benefit of active engagement with the training and development process.

The UK's Open University's Institute of Educational Technology has identified a number of trends and opportunities in the world of learning, which when considered in the context of measuring organisational outcomes for training and development, provide some potential opportunities for work-based learning programs. Two of the key ones that organisations across all sectors can consider are:

• Focusing on 'double-loop learning' where learners focus not just on what they are learning and exploring and working out how to solve the problem at hand but also, through a reflection process, they consider how they can become more effective in the process, enabling application of the current problem solving process to future problems. This has organisational implications insofar as such a learning process can be the foundations for knowledge-sharing across the broader organisation.
• First-hand experiences can be amongst the most powerful learning experiences and can be applied to both individual learning as well as organisation-wide learning. In the case of the former, processes and procedures need to be put in place to maximise the individual impact, and the ability, time and context for reflection to underpin this value. From an organisational perspective, story-led materials that are tailored to, and form the base of, organisational learning, ensure that work-based experiences are shared across a wider platform, placing story-telling as a key organisational tool that can deliver learning that fits the requirements of the organisation by maximising engagement.

Whilst learning and development opportunities have been identified through such sources as the UK's Open University's Institute of Educational Technology, recognition of the possible gaps in organisational learning and development were discussed in a recent edition of MITSloan Management Review, where the focus of recent research in a number of commercial organisations pointed to the need to develop corporate learning and development programs that link directly to the organisation's strategic priorities. Key outcomes of that research resulted from the research question of "How can corporate learning programs more effectively develop leadership talent?" The findings pointed to 3 key issues which were:

1. there was a need to align the learning agenda with the CEO's strategic agenda
2. there was a need to create governance mechanisms that linked learning to the rest of the business, and
3. there was a need to direct capability-building efforts too those that mattered most to the organisation.

Viewed in this manner, the research pointed to the importance of focussing less on how learning is delivered and more on linking content and structure with the organisation's strategic imperatives.

One thing is clear from the above discussion. Past methods of evaluating the effectiveness of learning and development expenditure within organisations can no longer rely on an outdated performance measure of staff attendances at 'off-the-shelf' or standardised 'training packages' delivered outside the organisational context, divorced from the organisational reality. Given the way people learn and the tools that exist to support learning, mean the lack of understanding of the true organisational and individual value-add of such training, can no longer be justified, especially in the non-profit sector where financial resources remain challenged.

OPTIMUM NFP in conjunction with Action Learning International launched the Action Learning Question program ("ALQ") in the nonprofit sector in mid 2014. The ALQ program has been running successfully in the UK for over 15 years, across nonprofit, commercial and public sector organisations. In the latter alone, over 200 participants have successfully completed the program over the last 3+ years. In Australia, the ALQ is being delivered as both an in-house program as well as a public program. The latter are known as Cross-Oragnisational Cohorts ("COCH"). The ALQ program, in both formats, responds directly to the challenges and opportunities discussed above and fully supports a more evaluative framework for assessing the effectiveness of organisational learning and development.

The first COCH completed in November 2015, whilst the second program is currently underway and is due for completion in early June 2016. The program has been recognised by the Australian Institute of Management Business School who, after rigorous review of content, structure and delivery methods, has accredited the program as 1 Unit (elective) towards its highly acclaimed 12-Unit Master of Business Administration (MBA) Degree.
The feedback from the first COCH was excellent and exceeded the expectations of those that attended. The second program is heading in the same direction with participants currently very enthusiastic about the process. A third program will be launched shortly for commencement in July 2016. Places for these programs are limited to ensure the best outcome for attendees.

Whilst registration forms will be available shortly on the OPTIMUM NFP website, you can register your preliminary interest by contacting David Rosenbaum at drosenbaum@optimumnfp.com.au or you can contact David Rosenbaum on 0411-744-911 to discuss the program in more detail to determine its applicability to you and your organisation.

Visit the OPTIMUM NFP website at www.optimumnfp.com.au and click on the "ALQ Workshops" tab to read the testimonials from the first program and to obtain information as to the structure and process of the COCH generally.

Support Mechanisms for CEOs - Why are they important?

The challenges for nonprofit CEOs and equivalent positions is immense and even more so in the current environment of economic uncertainty, political instability (especially in an election year), organisational change, and, in the context of nonprofit disability service providers, the changing nature of their business models in response to the movement away from a supply-driven market to one that is responsive to the demands of consumers in the form of the NDIS.

This scenario places heavy burdens on the CEO and equivalent positions as they face these challenges whilst maintaining ongoing service levels, addressing organisational sustainability, and dealing with boards that may not be necessarily skilled in identifying or addressing the strategic challenges that need to be understood and faced.

In August 2013, Forbes Leadership polled 200 CEOs and board directors and noted a range of collective concerns which were reflected as themes from the survey. These included:

• the need to get help with handling conflicts
• the need to further develop talent within their organisations
• the need to establish improved motivational skills amongst their executive teams

Whilst these were seen as major challenges within these organisations and ones that needed to be addressed by the CEO, there is ongoing recognition amongst organisational leadership, that active CEO groups could greatly impact the effectiveness of CEOs as they address these and many other related challenges including responding to such questions as:

• as your organisation grows, how do you maintain an inspiration to innovate and not dampen enthusiasm amongst your managers and staff?
• how do you encourage creative thinking in your organisation to foster growth and development?
• how do you promulgate your organisation's mission, vision and core values?
• how do you ensure that vision is being correctly interpreted in your organisation?
• how do you achieve organisational alignment through all levels of the organisation?
• how do you ensure your own growth and development?

CEO groups can be effective in improving the overall effectiveness of CEOs, ensuring improved organisational and personal outcomes, and this is why:

1. There is always more than one way of looking at a problem or a challenge. Obtaining broader input is necessary to ensure that you overcome any myopic tendencies.
2. A small supportive group can develop into a community of trust which can underpin an "off-the-record" type of engagement, allowing you to speak your mind freely without fear of repercussion.
3. Diversity within such groups ensures that input into your challenge is based on perspectives that you may not have or even able to see at given points of time.
4. The role of the CEO has often been described as a lonely one for various reasons. There can be an understandable tendency to be somewhat isolationists in your thinking. This can be balanced by the recognition in seeing your group as a small but safe 'community'.

OPTIMUM NFP recently launched its CEO Roundtable in response to the individual challenges associated with being a CEO and in the context of the organisational implications associated with the CEO performance. The CEO Roundtable ("CEOR") has been designed exclusively for CEOs of nonprofit organisations as a professional learning forum to support ongoing development of CEOs through a facilitated discussion and peer support process. The CEOR supports CEOs by:

1. being a sounding board
2. sharing experiences and challenges whilst collaboratively searching for solutions
3. challenging your thinking purely for the purposes of getting better organisational and personal outcomes, and
4. benchmarking your own performance through personal and group reflection

The CEOR is based around 4 foundational pillars:

1. FACILITATION  - it is professionally facilitated with a structured agenda that combines free-flowing discussion within focused attention to agreed pertinent issues
2. CONFIDENTIALITY - meetings take place in a confidential and emotionally safe environment enabling easy exchange of ideas
3. EXPERTISE - guest speakers with required specialist expertise will be invited as appropriate and as agreed to by the group
4. NETWORKS - fostering and supporting new and existing professional networks 

CEORs are being introduced in Sydney, Melbourne, Brisbane and Adelaide. For further information regarding the CEO Roundtable, visit the OPTIMUM NFP website at www.optimumnfp.com.au and click the tab entitled "CEO Roundtable" which provides further information as well as an online registration process. Alternatively, you can contact David Rosenbaum on 0411-744-911 or at drosenbaum@optimumnfp.com.au to make further inquiries.

The Business of Nonprofits

Much has been written about appropriate business models in nonprofit organisations. In what many are calling a paradigm shift in this sector, from a 'non-profit' mindset to a more 'business-like" mindset, there is evidence that the sands are shifting quite rapidly in a sector that has traditionally seen itself in a different light to that of a business. 

Additionally much has been written and spoken about the comparative positioning within a social-good perspective and whether this shift is in fact good, or is it actually undermining the sector and detracting from the social focus that should be at the heart of this sector's approach - the age old "Mission / Margin" argument. 

Whichever side of these arguments you sit, there is a number of realities that cannot be ignored, with these realities not really responding to the social considerations of the nonprofit sector, but the realities of markets, economics, and government policy. In essence, these realities are:

1. Economic circumstances in Australia are challenging and despite what politicians may tell us, the reality is that as Australia shifts from a mining economy to other forms, fallout will occur and consumers and businesses alike are being cautious. This caution challenges the ability of nonprofit organisations to increase funding from philanthropic sources.
2. Governments are facing many years of ongoing deficits irrespective of their political persuasion. Nonprofits that really heavily, or in fact entirely on government sources for their funding are facing the greatest risk to their sustainability and therefore their existence.
3. Government policy, again irrespective of political persuasion, is tending to prioritise their funding in this sector to larger service providers and relying on these server providers to interact with smaller organisations to deliver services at the ground level. This is a shift in governments' own business models and leaves smaller and possibly medium-sixes nonprofits at the mercy of larger nonprofits. This will, over time, force a degree of rationalisation into the sector. I make no value judgement as to the positives and negatives of such an approach, but merely state the obvious - it is happening.

An interesting article recently appeared in the Nonprofit and Voluntary Sector Quarterly (Volume 44, No.2 April 2015, pas.205-222) entitled "Being Nonprofit-Like in a Market Economy: Understanding the Mission-Market Tension in nonprofit Organising" written by Matthew Sanders, Assistant professor, Communication Studies, Utah State University. It makes for interesting reading as it trawls through various arguments associated with both sides of this debate. What is unique about this article is that it focuses on the role of communication in potentially bridging the apparent competing aspects in this debate.

In essence however, market and political realities are what they are and nonprofit organisations will not be able to address these in isolation. What they may be able to do is to better understand how they can work within this apparent conflict of ideas to build better organisaiotns and to design and deliver their services accordingly. Don't fight it - work within it!

Letting Your Employees In and The Impact on Leadership

Interesting article in the October 2015 edition of the AIM magazine on page 12, entitled "Time to Open the Books". In light of some recent client assignments it raised in my mind the question of what and how much do employees need to know, or should know, about the broader business, as distinct to the narrower view of what is going on within their own teams, departments, work groups etc. And of course in light of the frequent mantra regarding change management, where building the case for change and setting the scene is considered a pre-requisite for success, how does not 'letting them in' or giving them the broader context, fit that story?

There are other issues here of course, which revolve around keeping your employees engaged and, to a very great extent, excited about what is going on in the organisation, and, more importantly, engaging them in the organisation's future by chasing innovation, efficiency and effectiveness. Additionally, as the article eludes to, what about their emotional well being. A substantial part of an employee's life is focused around their work, so an environment that encourages enthusiasm surely can only be one where engagement is seen in the broader sense rather than the more narrower sense.

One of the key challenges in this approach to employee engagement and inclusion is, of course, the ability for organisational leaders to cope with a changing landscape where leadership is not seen as having all the answers and 'directing' staff, but rather seeking broad input into organisational challenges, recognising that a wide range of requisite skills exist right through the organisation, and diffusing the 'management' process. In many organisations such skills are not necessarily harnessed or even known, let alone sought and embraced. Potentially this begs the question as to the role of such areas as Human Resources - where I often suggest that operational and transactional approaches provide little value-add to the organisation, whilst strategic approaches should really be the focus.

Have organisations truly embraced this openness, as distinct to saying they do but practically they do not, or are some still operating within a historical paradigm of hierarchy and power, as distinct to a flatter, inclusive leadership and management culture?

How does your organisation function in this aspect?

The CEO Roundtable Launches

“The quality of a leader cannot be judged by the answers he gives, but by the questions he asks.” [Simon Sinek]

OPTIMUM NFP is pleased to announce the launch of the CEO Roundtable “(CEOR”), designed exclusively for CEOs of nonprofit organisations. This professional learning forum supports the ongoing development of CEOs through facilitated discussion and peer support

Being the CEO of an organisation is often referred to as a lonely position. The business challenges are coupled with the organisational challenges, which in turn are overlayed with the challenges of simply being the leader.

Would you like the opportunity to meet with other CEOs to

• have a sounding board when your work as an organisational leader challenges the status quo?
• Share your experiences, discuss challenges and collaboratively seek solutions?
• Challenge your thinking so that you achieve better organisational and personal outcomes?
• Benchmark yourself and performance through open and honest reflection?
• Seek strategies for supporting, developing or improving your Board’s governance?

The CEO Roundtable will:

• Be professionally facilitated with a structured agenda that combines free flowing discussion with focussed attention to pertinent issues, ensuring a positive experience for all
• Offer a confidential and emotionally safe environment in which you can exchange ideas, challenge your own and peer thinking
• Hear from invited guest speakers who are recognised experts in relevant fields when appropriate to the group’s needs
• Foster and support new and existing professional networks

How the CEOR will work?

• The CEOR will comprise a series of 10 monthly professionally facilitated sessions, each of 3-hours duration
• The agenda will be structured to provide for reflection on achievements and information sharing; identification of challenges and issues pertinent to the sector with solutions focussed discussion and; specific topic discussion
• The group will be self governing and responsible for setting key components of the agenda for each meeting

Where will the CEOR sessions be held?

• Sydney sessions will be held at the offices of the Australian Institute of Company Directors and the Australian Institute of Management. These sessions will be fully catered.
• Melbourne, Brisbane and Adelaide sessions will be held in similar venues with full catering available

David Rosenbaum is an internationally accredited facilitator and a highly experienced consultant to Government, commercial and in particular, the Australian not for profit sector. Within a professional learning framework, David’s group facilitation skills successfully foster peer support, increase positive networking outcomes and encourage individual personal and professional development.

What is the financial commitment to become a member of the CEOR?

• Annual membership of $3,100 plus GST covering 10 CEOR sessions.
• Membership fee becomes payable in full upon registration
• To ensure the integrity of the group’s intent, participants are encouraged to commit to regular personal attendance. Proxies cannot be used to cover absences

For further information, contact David Rosenbaum of OPTIMUM NFP or visit the Website and click on the tab entitled "The CEO Roundtable"